New York EV Tax Credits Guide

The state of New York offers incentives for buyers of new electric vehicles and plug-in hybrids, as well as owners of most electric vehicles. Unlike many states, the new EV incentive is a rebate rather than a tax credit. Here’s what you need to know if you own an EV in New York or you’re thinking of buying one.

As incentive programs shift over time, it is crucial that you research the current incentives before you buy, or consult a tax specialist to ensure you qualify for a rebate or tax credit. The information in this article was current as of its publication date.

New York’s Drive Clean Rebate program offers incentives of up to $2,000 for buying an eligible electric vehicle or plug-in hybrid. This isn’t a tax credit; it’s a rebate that immediately reduces the price of the vehicle at the time of purchase.

For electric cars purchased after June 30, 2021, the rebate amounts are as follows. The full rebate of $2,000 applies to electric cars with a range of over 200 miles. For EVs with a range of 40 to 199 miles, the rebate is $1,000. For EVs with a range of less than 40 miles, the rebate is $500. Furthermore, the rebate for any EV with an MSRP more than $42,000 is $500, so in effect, luxury EVs will not qualify for the full amount even if they have a long range.

The rebate is issued at the point of sale through participating car dealerships. Leased vehicles are eligible if the lease term is at least 36 months.

Used vehicles are not eligible for New York’s rebate program, though they may be eligible for the federal tax credit.

There are no incentives or credits available for installing home charging stations in New York, though federal incentives may be available. It’s also worth checking with the local utility company, since some may offer incentives or rebates for home EV chargers.

There are several incentives for installing home solar panels in New York, though they vary throughout the state. Some state incentives are provided directly to state-approved contractors and eligibility must be discussed with those contractors. Another program offers additional incentives to low-income households.

In addition to the federal income tax credit for solar panel installation, New York offers a 25 percent state tax credit for home solar installation. There are also two programs for property tax abatement to avoid paying increased property tax based on solar system installation; one is for New York City residents and the other is for residents of most areas of the state.

The state of New York does not assess additional registration fees for electric vehicles.

Drivers of most electric cars qualify for highway, bridge and tunnel toll discounts through the New York State Thruway tolling program and the Port Authority in New York City.

Consumers who purchase an EV in New York may also qualify for the Federal Electric Car Tax Credit of up to $7,500. New York residents should also check with their local electric utilities for any additional credits or incentives.